Why are rent and transport so much cheaper in India than in USA?

[Dockside]

Originally Posted by subsound

Where the hell does this graph come from anyways? Is there real data behind it or some guy with Excel making crap up?

LOL!!! Well put.

[rw47]

Because it's India?

[HappyTexan]

Originally Posted by freemkt

Rent and transport combined consume less than 10 percent of a poverty level income in India, while rent costs about 40 percent of a poverty level income in America, and a local bus pass costs about 10 percent of poverty level for a childless adult.

Sounds like housing in India is downright affordable, but why?

Do you understand how currency works ? They do not use the USD so you cannot compare.

[TrapperJohn]

Take a trip to India sometime and see for yourself. Rents in Detroit are dirt cheap also.

India is a nation of 1.2 billion. Half are under age 30. It's still rural - about 75% - and dirt poor. Their rich people, excluding the ultra-wealthy, are middle class in the states.

I spent three weeks there and met some nice people. There is a reason the smart ones all want to leave.

[Pruzhany]

If you want an American style home (with a real toilet), American style car and American style food then most residents of India will not be able to afford it. I'd say fly to India to see for yourself, but you can fly to Haiti and see the same issues. I've spent enough time in India, that I prefer to fly out ASAP when the issue I was sent there for is resolved. I think my best time was to be in and out in under 4 hours. It sort of makes the 22 hours of flying well worth it in each direction.

[cruxan]

i got a 20 foot trailer in a field with a fema tarp on the roof, a porto potty on the lot.. make me an offer to rent it..

[deepakshenoy]

Originally Posted by freemkt

[URL="http://capitalmind.in/2012/03/defining-indias-poor/"]Defining India’s Poor*|*Capital Mind[/URL]

Thanks. I wrote the article. The data is from:
[url]http://planningcommission.nic.in/news/press_pov1903.pdf[/url]

That's an official Indian Planning Commission report.

On the burning question: Rents at the poverty level are very low because in cities, the poor shack up with sometimes 8-10 to a room, or live off shelters, or in "slums". While officially they may pay less rent, they often end up having to bribe the local cops or administrators (or mafia) to continue. It just doesn't get recorded in official data but exists nevertheless.

In rural areas, land is cheap, housing is nearly free if you own the land, and hardly any zoning/construction laws are followed or enforced.

For transport, things are quite cheap anyhow. In Delhi, the average metro ride, to-and-fro, might be less than $1 for most workers. The bus ticket will cost less. In Mumbai the local train ticket for a near 40 Km distance is Rs. 11 or 20 US Cents. It's cheap, but very very crowded.

Rents beyond the poverty level are equivalent to the US. I'm not poor and I pay about 20% on rent, and about 10% on transport. Gas costs more than 1.5x what it costs in the US (directly converted). Housing is probably even more expensive in the cities. In gurgaon, where I live, which is a reasonably distant suburb of Delhi, prices for a decent apartment, 2000 sq. ft. with no appliances or pre-built air conditioning (you add your own) is now about $500,000. (Of course rental yields are like 2% a year; everyone and his uncle is betting that the 25% appreciation per year will continue forever)

We're in the middle of a dramatic housing bubble here at the top end of housing, but it's such a small part of th economy that it might not create big problems when it pops. Yet, that means that housing is expensive if you're not poor.

(And I agree that if we change the definition of what poor is, to more reasonable measures like having access to clean drinking water etc., we will find most of India is poor)

[NEOhioBound]

Originally Posted by SamBarrow

Because it's India?

LMAO.. I was thinking the same thing. You can't even compare the two countries! Both places are so vastly different

[oberon_1]

Poverty in India is not considered a moral fault.
In America, the real sin is not what Jesus preached, but being poor.